Pakistans benchmark stock index crossed 180,000 points during trading for the first time on Wednesday, before late selling wiped out the early gains and left it slightly lower at the close. The KSE-100 index finished the day at 179,083.80, down 251.44 points, or 0.14 percent, after touching an intraday high of 180,769. The session low was 178,642, and more than 1.24 billion shares changed hands, worth about 41.8 billion rupees across more than 487,000 trades.
The brief push past the round-number mark came a day after one of the strongest rallies of the year. On Tuesday, the index had jumped 5,448.56 points, or 3.13 percent, to close at 179,335.24, as investors returned from the long weekend, trading having been suspended on Monday for Iqbal Day. Dealers said the buying was helped by strong remittance inflows and a sharp fall in world oil prices, with Brent crude dropping to about 90 dollars a barrel, easing pressure on Pakistans import bill.
Reports also linked the rally to calmer geopolitical news, with investors welcoming signs that the United States was holding off further strikes against Iran. That mood lifted stocks across the board on Tuesday, and the index has now gained more than 12,900 points since the start of November, recovering ground lost during a weak October, when it fell 2.1 percent to close the month at 166,409.
Wednesday, however, showed how quickly the mood can turn. After opening higher and pushing through 180,000, sellers stepped in and the index drifted lower through the rest of the session. Market watchers said the round number had acted as a natural point for investors to take profits after such a sharp two-day climb, rather than a sign of any sudden change in the outlook.
The pullback should also be kept in proportion. The index has traded as high as about 189,167 over the past year, so Wednesday was a milestone of sorts, but not a record. Foreign investors were net sellers in the latest session, with outflows of about 4.4 million dollars, according to market data.
For ordinary savers, the bigger story of recent weeks has been the rush of new investors into the market. A record 25,747 new investors joined the Pakistan Stock Exchange in October, taking the total investor base to nearly 682,000. Whether Wednesdays brief taste of 180,000 becomes a platform for the next leg higher will depend on whether that fresh money keeps coming in, and whether oil prices and regional tensions stay calm in the days ahead.
